Current economic performance and some challenges
According to China’s National Bureau of Statistics, the country has recovered steadily through the first half of 2021, with a “sound growth momentum consolidated”. Based on the announcement, China’s overall GDP increased by 12.7 percent in the first half of this year.
Some notable growths in the following areas are reported by the bureau:
- Agriculture (crop production and output of pork increased)
- Mining, manufacturing, production, and supply of electricity, thermal power, gas, and water
- High-tech manufacturing
Production of new-energy automobiles, industrial robots, and integrated circuits
Transportation, storage and postal services and information transmission, software and information technology services
Online consumption such as express mail services, telecommunication, broadcast, television and satellite transmission services, internet, software, and information services
Monetary and financial services and insurance
- Retail sales of consumer goods
Catering, sports and recreational articles, communication equipment, cosmetics, and cultural and office supplies
- Investment in fixed assets
Infrastructure, real estate development
High-tech manufacturing (manufacturing of computers and office equipment, medical equipment, measuring instrument and equipment)
High-tech services (e-commerce, R&D, and design services)
- Social sectors including health and education
- Exports of mechanical and electrical products as well as total value of imports
However, China remains to face uncertainties as the virus continues to mutate globally and external instability may be foreseen. Furthermore, the bureau statistics has indicated an uneven recovery as per domestic demand, urban employment, and retail sales.
Based on the analysis of the NBS report, domestic demand is going to be “challenging” as consumers remain concerned of their limited time and budget. On the other hand, the national report noted an increase in the jobless rate of young people aged 16 to 24.
Finally, although there has been considerable growth in the retail sales of goods, the data showed a slight drop from 12.4 percent in May to 12.1 percent in June. It is the slowest growth recorded for retail sales this year.
Nevertheless, the slower domestic demand is counterbalanced by the continued growth in China’s exports and manufacturing production. And although commodity prices went up, resident income continued to grow in the first half of the year.